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Is it possible to create great games within less than 1 GB of space? Sure. The original Doom took up less than 2.5 MB. But in the triple-A market, where graphics are important, developers will make use of the hardware that's available. Current-gen consoles can handle games of 150+ GB in size, so developers make use of it by including a large variety of hi-res textures.
As resolution increases games are only going to get bigger.
As to why "we need" those graphics, you'll have to ask people who buy games mainly for the graphics - who constitute a substantial part of the triple-A audience. I usually don't, I just take them as a nice bonus. They certainly do look nice in 4k resolution on my 43' monitor, it's great to be able to get really close to textures and still see crisp and detailed surfaces.
If you talk privately to developers of games that released in a broken state, you'll find out that they usually knew that the game wasn't ready, but the publisher decided to release it anyway - sometimes because they needed more revenue in the fiscal year, sometimes because they didn't want to miss an important sales window (like the holiday season), sometimes because there's a third-party license involved and the game is just one part of a multi-media campaign, sometimes for other reasons. None of that could be fixed or otherwise changed by dropping high-resolution graphics from the feature list.
simple as.
There's a point where throwing more coders at a project does not improve the bugfixing process. The reason for this is the required coordination among a large team of coders who all work on interdependent parts of the same code base. If you simply blow up the coding department to a huge size, you're very likely to introduce _more_ bugs into your game.
It also (usually) doesn't help to hire more testers for QA, because as I said before, the developers are usually aware of the issues that a game has. In most cases, the QA departments are already doing their job, they don't need more people. The problem is that the publishers often do not listen to the QA people and knowingly release the game in a buggy and/or unfinished state because of the economical reasons I listed earlier.
What would often help releasing triple-A games in a better state, is more time for development. The simplistic idea that having a large team of artists somehow makes games buggier has very little basis in reality.
2TB HDD i found were about 40-60€
SSD prices should still come down but it takes time